Which items may be added to achieve an estimate of program benefits?

Which items may be added to achieve an estimate of program benefits?

• A. All of the above
• B. Savings
• C. Avoidance
• D. Productivity Improvement

Answer: (A)

Estimating program benefits involves adding together different positive impacts the program creates. Savings are direct reductions in operating costs achieved by the initiative. Avoidance is about costs that are not incurred in the future because the program prevents them. Productivity improvement reflects higher output or lower inputs per unit, which translates into additional value. Each type represents a genuine benefit, and they can be summed to form the total estimated benefits. Therefore, all three—savings, avoidance, and productivity improvement—may be added to arrive at the program’s benefit estimate.

Estimating program benefits involves adding together different positive impacts the program creates. Savings are direct reductions in operating costs achieved by the initiative. Avoidance is about costs that are not incurred in the future because the program prevents them. Productivity improvement reflects higher output or lower inputs per unit, which translates into additional value. Each type represents a genuine benefit, and they can be summed to form the total estimated benefits. Therefore, all three—savings, avoidance, and productivity improvement—may be added to arrive at the program’s benefit estimate.